Bermuda BDA Stakeholder Update – February 2016

Budget season is always a good time for evaluation. The Bermuda government’s 2016–17 statement, delivered this month, provides a fiscal snapshot of where our jurisdiction stands on debts, interest payments, industry challenges and GDP growth. Among the statistics and granular breakdowns, however, several fundamental themes emerged:First things first: our economy is growing
Slowly, perhaps, but we can point to four quarters of consecutive GDP growth. As the Budget indicated, this doesn’t mean we’re back in the economic powerhouse period of the 1990s and early 2000s—far from it. In fact, we may need to accept those halcyon days may never return, replaced by a new normal. Those believing we need to bounce back to boom levels to be truly out of recession need a dose of post-financial-crisis reality. Lack of boom notwithstanding, we are seeing green shoots sprouting and we must tend to them: new companies are establishing, jobsare being created, and positive momentum is fuelling investment and positive effects in many sectors, from office refurbishment powering construction and real estate, to flight capacity and hotel-bed occupancy boosting tourism.